Twitter Co-Founder: Site Has 'a Lot of Money in the Bank'
Start-ups tend to burn through the bucks in a big way, but Twitter's co-founder Evan Williams says his company has plenty of cash in hand, thank you. His assessment comes as the microblogging site is reportedly considering another round of venture funding.
When queried about Twitter's interest in pursuing that additional infusion of venture funding, Williams, who was speaking at a San Francisco technology conference Wednesday, replied that Twitter has "a lot of money in the bank," according to a Reuters report.
Williams, who stepped down as Twitter CEO just last month to oversee product strategy, said the company's advertising efforts are paying off and exceeding Twitter's initial forecasts, the report noted. In September, Twitter unveiled a revamped design that included a template for advertising placements.
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For Twitter, as for any other start-up, demonstrating revenue growth is particularly important when attempting to lure in investors. According to a TechCrunch report, Twitter's next potential round of venture funding would be greater than the $100 million it raised last year. That previous round gave Twitter an estimated valuation of $1 billion.
Twitter, which has raised roughly $160 million to date, could garner a valuation around $3 billion based on the next VC investment, TechCrunch notes. Potential investors could include Digital Sky Technologies, which two months ago expressed some interest, according to a Business Insider report.
Another option for Twitter may come in the form of a buyout offer from Google (GOOG) for as much as $5 billion, but rumors of such talks are far from substantial, notes TechCrunch. Glad to hear it: A Twitter buyout by Google would be a bummer for all the potential investors who are patiently waiting for the one day, someday, Twitter IPO.
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